Injustice, market and unexpected income

When the hatred against agriculture is disguised with the sheepskin of equity, we are in the presence of historical resentment or desperation to obtain resources to continue with the mirage of a better distribution of income.

Rather, of both things, mixed or intertwined. agriculture is in itself an activity with unexpected results. by essence, the rent is unexpected. Just as there are profits, there are also losses. And both are unexpected. It is pure perversion that the State would assume, in case of applying a tax on unexpected profit, as if the activity did not periodically have unexpected losses.

Today, the Government speaks of unexpected income. And in doing so, not only does it omit its counterpart, the unexpected loss, without taking into account the sharp increase in costs, as a result of the increase in the prices of agrochemicals and fertilizers, fuels and land and sea freight. It is not about letting the market operate capriciously, but neither about relegating it to a secondary position. In the allocation of resources and in stimulating production, the market has the last word. However, the Government insists on increasing the control, which is the same as putting out the fire with gasoline..

The market is a kind of daily plebiscite by which consumers decide to buy or abstain. This is how prices are established. Therefore, with what authority can the State define when there is an unexpected profit? But, with obvious arbitrariness, he points to it.

The Argentine competitive scene is dual. And in the agricultural link there is no exception. on the one hand, there are the operators that act within the formal scheme and, on the other, those that do so in the informal. The latter are the ones that develop all kinds of opportunistic cultures.

Opportunism is a tradition in Argentine business. And it is as a consequence of the arbitrary and untimely action of governments. for the opportunist there are no principles or convictions when it comes to making money. It is a kind of creativity to violate ethical standards, and generate behaviors such as misrepresenting, lying, defrauding, bribing and smuggling. And the one that provides the oil for this machinery to work is the State itself.

It’s been a long time since the increase in taxes is not the solution to the problem of the fiscal deficit. The problem is solved by attacking the sources of waste and corruption in the national public sector; and that of the provinces and municipalities, in addition to public entities and companies. Blind to reality, the Government persists in the historical direction.

Consequently, the growing tax burden drives away investments and stimulates illegal work and smuggling. It is difficult -if not impossible- for there to be people willing to make an effort, to make risky investments when uncertainty prevails and where moral relativism is the basis of agreements and emergencies are invoked to displace property rights and increase taxes .

As Julio HG olivera, who was a professor of economics at the UBA, stated: “the uncertainty attributable to insecurity generates forecasts of capital losses that depress all productive effort.” That’s how we are, Argentines. Always scared. Always surprised.

As Borges said: “If I am rich in something, it is perplexities and not certainties” (conversations with Jorge Luis Borges, Richard Burgin).

The author is director of Agroeconomic Consulting (CAE)

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